The average yield on index-linked gilts with a maturity of over five years is below 0.4%. When borrowing is so cheap, doesn’t it make sense to do more of it?

Written by Nigel Stanley

I was the TUC’s Head of Campaigns and Communications until semi-retiring in May 2015, I started at the TUC in 1994.
My interests cover a wide range of communications and politics related issues, but if I have a specialist subject, it's pensions…

One Response to A couple of links

The yield on non-index linked bonds is blow the current rate of inflation, free money. And yes, if I could borrow money on those terms I would borrow it, take a risk and buy blue chip stocks.

What you are suggesting though is that it is a good time for the government to take more risks. Risks that if they go wrong will not really affect the average government minister or mandarin all that much.

Large scale government borrowing carries a lot of macro-economic risks. When these risks go bad they tend to adversely affect the people unions purport to care most about more than anyone don’t they?